Infrastructure is essential for economic and social development. The transport sector accounted for 68% of the fund’s total loans in 2003-2004

THE Kuwait Fund for Arab Economic Development made history on its foundation in 1961 when it became the first aid agency to be established by a developing country. It has been committed to helping people around the world regardless of their race or creed ever since.

“Kuwait has been blessed, and we want to use our wealth to help promote development and peace in the world,” says Direc-tor General Abdul-wahab A. Al-Bader, explaining the raison d’être of the Kuwait Fund.
Originally foc-used on Arab nations, the fund is now expanding its global reach to provide financial and technical assistance to countries around the world. Offering loans with favorable conditions, the fund has lent over $11.5 billion to finance projects in 101 different countries so far. East Asian and Pacific countries are big recipients and, increasingly, Africa is becoming a priority.

“Our emphasis on Africa reflects the pressing need to alleviate poverty and improve people’s opportunities for a better life,” says Mr. Al-Bader.

It remains a little-known fact that Kuwait’s foreign assistance is considerably higher than the UN target for rich, capital surplus countries. This generosity is felt across the world, including in some countries closer to home. Mr. Al-Bader elaborates: “As a whole Kuwait has close relations with countries around the world although, of course, we have had problems with Iraq. I remember being in Iraq in 1989 to sign a loan agreement two or three months before the invasion. Now, we are in the process of establishing good and strong relations with the country, and are beginning to assist in its development again.”

ABDULWAHAB A. AL-BADER Director General of the Kuwait Fund for Arab Economic Development

The fund is increasingly focusing on social issues such as health and education, particularly in Africa. It has renewed its long-standing commitment to the river blindness control program in West Africa until at least 2010 and is working in support of the Highly Indebted Poor Countries (HIPC) Initiative and the United Nation’s Millennium Development Goals.

“We are intensifying our efforts to address the plight of poor people and to create the conditions necessary for improving their lives,” states Mr. Al-Bader.
One of the fund’s key tools in the fight against poverty is the support of social funds. “Well designed social funds with microfinance schemes allow the poor, particularly women, to contribute to their own well-being,” explains Mr. Al-Bader.

The Kuwait Fund’s cooperative philosophy is evident in its approach to the projects it funds, where it works alongside both local bodies and
development institutions to ensure effective project implementation.

“Over half of the projects we support are co-financed. We think of ourselves as a development partner in the 101 countries where we are present,” says Mr. Al-Bader.

In addition to finance, the fund also builds technical capacity by supplying the expertise required for projects to get off the ground and the training of local partners.

“Capacity building is essential for countries to take charge of their development—to help them in leading and in owning their development operations,” stresses Mr. Al-Bader.